Southwest Airlines announced on Thursday that it plans to abandon its open-seating policy, a system it has used for over 50 years. The airline will start assigning seats to passengers, aligning with the practices of other major airlines.
CEO Robert Jordan explained the decision to CNBC:
“I know there are going to be customers who say, ‘I want to stay with open seating.’ It’s a minority.” He added, “We had the same thing when we switched from plastic boarding passes. We had the same thing when we took peanuts out of the cabin. I’m convinced we can win them over.”
The airline’s research revealed that customer preferences have shifted over time. Southwest found that 80% of its current customers and 86% of potential customers prefer assigned seating. Jordan noted that open seating was the top reason travelers chose other airlines over Southwest.
Under the current system, passengers check in exactly 24 hours before departure to secure their spot in the boarding line. The first 30 to check in are placed in the “A” boarding group, giving them the best chance at window or aisle seats. Late check-ins often result in middle seats.
While many loyal Southwest Airlines customers still appreciate open seating, the airline believes they will adapt to the change. The current system has its drawbacks. Jordan mentioned that 60% of passengers check in within the first 30 seconds, creating a rush. Late boarders often struggle to find seats, becoming what Southwest calls “spinners.”
Along with assigned seating, Southwest plans to convert about one-third of its plane seats to premium seating with extra legroom. The airline will also introduce its first-ever redeye flights, starting in mid-February on routes like Las Vegas to Baltimore and Los Angeles to Nashville.
Despite these changes, Southwest will continue its popular policy of allowing passengers to check two bags for free. Jordan stated there are no plans to end this “at this point.”
These changes come as Southwest faces pressure from Elliott Investment Management and increased scrutiny from the Federal Aviation Administration following several concerning flight incidents.
On the financial front, Southwest Airlines’ reported a 46% drop in second-quarter profit to $367 million, despite higher revenue. The airline, like others in the industry, is grappling with increased costs and reduced pricing power on domestic flights.
Despite the challenges, Southwest Airlines’ stock rose 5.5% following the announcement, indicating investor approval of the airline’s new direction.
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